mortgage payment protection Help

mickyblueys

I have mortgage protection through helpupay ( now called helpucover.co.uk) as advised through this website many years ago. i am currently covered for approx £850 per month for a fee of £16.40 per month (had this for many years now). the problem is i have just recieved a letter stating that if i wanted to keep this level of cover i had to increase my monthly payment by a further £5 per month which i think is very harsh:mad: .

Reason given was world wide credit crunch and rising unemployment ( easy get out clause if you ask me):rolleyes: .

I was only wondering if they were allowed to do this , or could i refuse and still keep the same level of cover.Cover that i thought i had signed upto which would stay SET at the figures i had agreed with.

Any help would be gratefully appreciated.

If i have placed this thread in the wrong place i apologise as i am new to this!

Wutang_2

Its really not that harsh - a fiver??

confused31_2

mickyblueys wrote: »

I have mortgage protection through helpupay ( now called helpucover.co.uk) as advised through this website many years ago. i am currently covered for approx £850 per month for a fee of £16.40 per month (had this for many years now). the problem is i have just recieved a letter stating that if i wanted to keep this level of cover i had to increase my monthly payment by a further £5 per month which i think is very harsh:mad: .

Reason given was world wide credit crunch and rising unemployment ( easy get out clause if you ask me):rolleyes: .

I was only wondering if they were allowed to do this , or could i refuse and still keep the same level of cover.Cover that i thought i had signed upto which would stay SET at the figures i had agreed with.

Any help would be gratefully appreciated.

If i have placed this thread in the wrong place i apologise as i am new to this!

thats a cracking deal i pay 44 pound a month, mind you it covers me for 24 months

dunstonh

as advised through this website

This site isnt authorised to give advice.

which i think is very harsh

Why?

Reason given was world wide credit crunch and rising unemployment ( easy get out clause if you ask me):rolleyes: .

And totally correct. Risk goes up, so cost goes up. Just as when the risks were low, the costs were low. You cant have it both ways.

I was only wondering if they were allowed to do this , or could i refuse and still keep the same level of cover.Cover that i thought i had signed upto which would stay SET at the figures i had agreed with.

Yes they are allowed. The premiums are reviewable, not guaranteed.

_Andy_

mickyblueys wrote: »

Reason given was world wide credit crunch and rising unemployment ( easy get out clause if you ask me):rolleyes: .

Valid business reason given the level of unemployment and therefore claims if you ask me

Peelerfart

I'm expecting mine to go up. Reading your post has just reinforced that.

mickyblueys

thanks for the advice,
i still think it is very unfair, The reason being unemployment was at record lows over the last three years and business's were booming................but did they offer to reduce anybodies monthly payments .......I think not.
........they pocketed the money

and now times are looking a little dodgy they come back and demand more money.

dunstonh

i still think it is very unfair, The reason being unemployment was at record lows over the last three years and business's were booming................but did they offer to reduce anybodies monthly payments .......I think not.
........they pocketed the money

wrong. payment protection is around half the cost it was during the last recession. So, its not unfair that they go up again when the risk was higher.

MarkyMarkD

Either premiums are fixed, or they are not.

All the furore there has been about single premium PPI, people forget the major advantage of it is that the premium is agreed - and paid - up-front and there is no chance of it increasing part-way through.

Most insurers will be putting premiums up in due course, but the ones who were pricing very competitively in the first place are obviously the ones with least slack in their pricing.

You should be appreciating the cheap price you've paid for years, not complaining about it increasing slightly now.

opinions4u

You can shop around for alternative policies.

http://www.moneysupermarket.com/asu/IncomeProtectCover.asp

Just beware all the small print and don't cancel any existing policy until you're through any initial qualification periods.

dunstonh

All the furore there has been about single premium PPI, people forget the major advantage of it is that the premium is agreed - and paid - up-front and there is no chance of it increasing part-way through.

True. Although I still think it is a bad idea

I wonder how many people claiming back PPI (which looks like an awful lot from the other forums) are going to find that had they kept it they would have been able to claim for unemployment and end up worse off because they claimed mis-sale.